Australian workplaces are under strain.
The AHRI Psychosocial Risks Report 2025 found a significant increase in the number of psychosocial hazard complaints and claims in the 12 months to October 2024. The top two causes?
High job demands
Conflict or poor workplace relationships and interactions
Behind these statistics are real people — overwhelmed employees, stretched managers, and teams losing connection amid constant change.
Research shows that chronic job demands (like excessive workload or role ambiguity) are among the strongest predictors of burnout and disengagement (Bakker & Demerouti, 2017). When these demands are left unmanaged, organisations see higher absenteeism, turnover, and even compensation claims — costing Australian businesses billions annually.
At Steople, we believe these issues aren’t just HR challenges; they’re leadership and data challenges. When leaders are equipped with the right insight — through assessment, feedback, and coaching — they can spot the warning signs early and create healthier, higher-performing teams.
Despite clear evidence that leadership capability is critical to wellbeing, only 28% of employers invest in building leadership and management capability to reduce psychosocial risks.
That gap matters. Studies in organisational psychology have consistently found that leader behaviours — empathy, fairness, communication, and clarity — are among the strongest protective factors for mental health at work (Kelloway & Barling, 2010). Leaders shape not only performance but also the emotional climate of the workplace.
This aligns with our experience at Steople.
When we work with organisations through our Leadership Development Programs, Psychological Safety Assessments, and Coaching for Behaviour Change, we see measurable improvements in team wellbeing, trust, and engagement. Leaders learn to recognise early signs of distress, manage workloads constructively, and foster environments where people feel safe to speak up.
Because leadership isn’t just about delivering outcomes, it’s about creating the conditions where people can thrive.
The AHRI report reinforces that psychosocial risks are no longer peripheral concerns; they sit at the heart of sustainable organisational performance.
This finding echoes decades of research linking wellbeing and productivity. Studies by Gallup (2023) and Harter et al. (2002) found that teams with high engagement and psychological safety outperform others across every major metric — from retention to profitability.
But psychological health isn’t built through one-off wellness initiatives. It requires data-driven insight and consistent dialogue.
That’s why Steople partners with organisations using our Assessment and Survey Tools, such as:
Steople Leading for Performance and Wellbeing 360 Assessment — gives leaders the self-awareness to manage psychosocial risks through behaviour change.
When leaders and teams have clear, objective insight into what’s working and what’s not, they can take targeted action that strengthens culture and wellbeing long-term.
Psychosocial risk management is now embedded in Australian workplace legislation — but focusing solely on compliance misses the opportunity for transformation.
Effective organisations treat psychosocial health as a strategic capability. They invest in building psychologically safe cultures, where people can raise concerns, seek support, and experiment without fear of blame. Research by Edmondson (2019) shows that teams high in psychological safety are more innovative, collaborative, and resilient in the face of change.
At Steople, we help clients move beyond minimum standards by:
Developing leaders who can respond constructively to stress and conflict.
Designing roles and structures that balance job demands with autonomy.
Embedding wellbeing practices into daily rhythms — from coaching to team reflection sessions.
Our approach blends psychological science with pragmatic leadership development, helping organisations reduce risk while unlocking the human potential that drives performance.
As workplaces evolve through technology, hybrid models, and shifting expectations, psychosocial health is emerging as one of the defining challenges of modern leadership.
But it’s also one of the greatest opportunities to redesign work in a way that’s both productive and humane.
The evidence is clear:
✅ Strong leadership capability reduces psychosocial risks.
✅ Data and assessment turn intuition into insight.
✅ Wellbeing and performance aren’t opposites — they’re interdependent.
When organisations invest in their leaders and measure what matters, they don’t just comply with regulation — they create workplaces where people feel valued, connected, and motivated to perform at their best.
At Steople, we call that sustainable success through people.
If your organisation is ready to strengthen its psychosocial health and leadership capability, we can help.
Contact us to learn more
For nearly two decades, I’ve had the privilege of working as a performance psychologist, merging a lifelong passion for sport with a deep curiosity about human behaviour. On and off the field, I’ve seen the incredible impact that mindset, culture, and leadership can have on performance outcomes.
And yet, there’s a persistent challenge I’ve observed — both in elite sport and in the corporate world.
Despite overwhelming evidence to the contrary, performance psychology is still often seen as a “nice to have” rather than a non-negotiable. The same can be said of organisational effectiveness (OE) strategies in business.
So, why is something so fundamentally linked to results so frequently undervalued?
We know from countless studies that organisational culture, leadership capability, and employee engagement are directly correlated with business success. Research from Gallup, Harvard, and McKinsey consistently shows that investing in people pays off through higher productivity, lower turnover, and increased innovation.
But here’s the catch: translating the intangibles of culture and people into tangible ROI can feel daunting. That uncertainty often leads organisations to deprioritise OE, especially when budgets are tight.
However, forward-thinking organisations are turning this narrative around, because they know that OE isn’t fluff. It’s strategy.
When assessing the value of organisational effectiveness, we must ask the right questions:
What does it cost when we lose a high-potential employee?
How much productivity is lost through disengagement?
What is the return on a leader who can coach, motivate, and inspire their team?
These questions have measurable answers. In fact, many leading companies now assess metrics such as:
Employee turnover and replacement costs
Selection accuracy and recruitment expenses
Performance variability between high- and low-fit hires
Training impact and retention of capability
Employee wellbeing and self-care behaviours
Organisational commitment and job satisfaction
When captured and analysed effectively, these metrics tell a compelling story—and build a strong business case for a robust OE strategy.
Arts Centre Melbourne (ACM) provides a powerful example of OE done right. After reporting a $7 million loss in 2013, the organisation reimagined its approach—elevating people and culture to the centre of its strategic plan.
As CEO Claire Spencer explained:
ACM partnered with OE consultants to define its desired culture, align leadership behaviours, and embed these values into every system and process. The results were telling:
A significant increase in staff engagement (2015–2016)
A 97% customer satisfaction rating
Clear articulation of purpose, values, and vision
A return to commercial profitability
This transformation wasn’t magic. It was method. And it’s repeatable.
You might already have elements of an OE strategy in place—but is it comprehensive? Is it aligned to your organisational goals and culture? Is it grounded in behavioural science?
A truly effective OE strategy considers the entire talent lifecycle:
Recruitment and Selection: Using evidence-based assessment tools to hire for both skill and culture fit
Leadership and Team Development: Fostering self-awareness, capability, and trust through coaching and targeted development
Culture and Engagement: Creating psychologically safe environments where people thrive
Wellbeing and Resilience: Supporting sustainable performance through individual and systemic wellbeing initiatives
Career Alignment: Enabling growth through career pathways, transition services, and organisation design
Each element must be tailored to your unique context—and regularly reviewed to ensure it evolves with your organisation’s needs.
The most successful organisations treat OE as proactive, not reactive. They don’t wait for cracks to appear before investing in their people systems. They build the capability, clarity, and culture needed to unlock performance before it’s urgent.
Yes, developing an OE strategy requires commitment. But approached systematically, and supported by skilled practitioners in organisational psychology, the return on investment is significant—both commercially and culturally.
As Robert Levering famously said:
Is your organisation set up to be that kind of workplace?
If you’re ready to explore the ROI of organisational effectiveness, let’s start a conversation.
Reach out to a Steople consultant and discover what’s possible when psychology meets performance.
Contact us to learn more.
If you think investing in employee wellbeing is just a “nice-to-have” or solely HR’s responsibility, it’s time to reconsider. Groundbreaking research from the McKinsey Health Institute (Jeffery et. al., 2025) reveals a compelling truth: companies that genuinely prioritise their people’s health consistently outperform their competitors. And not by a small margin.
Between 2021 and 2024, the “Well-being 100” — a portfolio of companies rated highest for employee wellbeing on the job platform Indeed — significantly outperformed major market indices like the S&P 500, Nasdaq Composite, and Russell 3000. (Jeffery et. al., 2025, De Neve et. al., 2024) This research clearly shows that employee wellbeing is not just an ethical imperative; it’s a powerful business advantage that directly affects your bottom line.
McKinsey’s comprehensive global survey (De Neve et. al., 2024) of over 30,000 employees across 30 countries paints a sobering picture. Only 37% of employees reported experiencing good holistic health, a broad concept encompassing mental, physical, social, and spiritual well-being. Meanwhile, about 20% showed signs of burnout, an alarming figure for any organisation.
The challenges vary by industry. Higher burnout rates were observed in sectors such as accounting, retail, agriculture, and arts/media. On the other hand, industries like education, engineering, and human resources tended to report better wellbeing scores and lower burnout levels.
One notable insight is the heightened risk faced by employees juggling caregiving responsibilities alongside work, a segment that requires tailored organisational support to avoid burnout and disengagement.
From an economic perspective, McKinsey estimates that improving employee well-being could unlock up to $11.7 trillion in global economic value. This stems from increased productivity, reduced absenteeism and presenteeism (when employees are physically at work but not fully functioning), better talent attraction and retention, and significantly lower healthcare costs.
While these findings are enlightening, they also raise a crucial question: how do organisations translate data and insights into meaningful action?
The answer lies in leadership. The McKinsey research highlights that leadership commitment and behaviours are foundational to embedding well-being into workplace culture. Leaders who understand and model behaviours that promote wellbeing help foster environments where employees feel valued, supported, and motivated, directly impacting organisational success.
At Steople, we have taken these insights to heart by developing the Leading for Performance and Wellbeing Assessment™, a 360-degree leadership assessment designed to identify and cultivate the critical behaviours that drive a healthy balance between performance and wellbeing.
The Steople Leading for Performance and Wellbeing model™ highlights seven key leadership capabilities:
These aren’t abstract ideals; they are measurable behaviours that translate directly into increased employee well-being, engagement, and performance.
We know leadership development requires more than theory—it demands practical tools and measurable outcomes. That’s why Steople offers an integrated approach:
The McKinsey study—and decades of psychological research—make one thing clear: employee wellbeing is inseparable from organisational success. Happier, healthier employees are more productive, more innovative, and more loyal. They take fewer sick days, perform better while on the job, and stay longer, reducing costly turnover.
But creating this environment requires leaders who are equipped, accountable, and genuinely committed to fostering a culture where wellbeing and performance coexist.
Steople’s Leading for Performance and Wellbeing model™ offers a proven, practical pathway to develop those leaders. Paired with our evidence-based programs, we help organisations unlock their people’s full potential — for the benefit of employees, investors, and customers alike.
The future of work demands that we rethink leadership and wellbeing as inseparable pillars of success. If you want to move beyond talk and make tangible progress in creating a thriving workforce, the time to act is now.
Whether you’re facing high turnover, low engagement, or simply want to future-proof your organisation, we’re here to partner with you. Together, we can turn insight into impact.
Reach out today at info@steople.com.au for a no-obligation conversation or to schedule a complimentary organisational wellbeing snapshot, or visit steople.com.au to learn more.
Jeffery, B., Weddle, B., Brassey, W., & Thaker, S. (2025). Thriving workplaces: How employers can improve productivity and change lives. McKinsey Health Institute.
De Neve, J.-E., Kaats, M., & Ward, G. (2024) Workplace Wellbeing and Firm Performance. University of Oxford Wellbeing Research Centre.
Let’s face it; real, lasting behaviour change is hard.
Whether you’re trying to coach a leader to delegate more, help a team communicate better, or guide someone through a transition, change doesn’t happen just because we want it to. Even with the best intentions, people often revert to old habits. Why? Because without structure, support, and science, change simply doesn’t stick.
At Steople, we believe positive behaviour change is not just possible, it’s essential. It’s the foundation of everything we do. Whether we’re coaching a senior executive, assessing a team, or designing an organisation-wide program, we draw from psychological science to build sustainable, human-centred development strategies.
Many change initiatives overlook one simple truth: humans are not logic machines—we are emotion- and habit-driven beings. According to the Transtheoretical Model of Change, people move through distinct stages: Precontemplation, Contemplation, Preparation, Action, and Maintenance. Without guiding someone through each phase, especially the messy middle between insight and implementation, change stalls.
Likewise, Self-Determination Theory (Ryan & Deci) tells us that to be intrinsically motivated, people need three things:
Traditional coaching often neglects these core needs—pushing people to “improve” without understanding what matters to them. At Steople, we do things differently.
Our model is built around six critical stages, rooted in decades of psychological research and practical coaching experience:
Without a structured psychological framework, coaching risks becoming aimless, nice conversations with little follow-through. But when coaching is grounded in science, it becomes transformative.
Our coaches use this model not as a rigid formula, but as a guide—tailoring the experience to each individual’s readiness, goals, and context. That’s what makes our approach both human and high-impact.
In our next article, we’ll explore how we bring this model to life in practice, and how behaviour change coaching can help leaders thrive, teams align, and strategy come to life.
Because with the right insights, tools, and support, positive behaviour change isn’t just possible. It’s powerful.
Ready to explore Steople’s coaching approach for your leaders or teams?
Contact us to learn more.
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